Marketing Case Study: Cavinkare Private Limited

Introduction.
CavinKare Private Limited was founded by C. K. Ranganathan. The firm had originally started as Chik India in 1983. It changed its name to Beauty Cosmetics Private Limited in 1990 and in 1998 it became CavinKareb Private Limited with the objective of going beyond cosmetics and offering a wide range of consumer products. Twenty years later, his company emerged as a strong competitor in the Indian fast-moving consumer goods (FMCG) market, offering a range of hair care, skin care and personal care products. The organization had several recognized brands such as Chik (shampoo, talc), Meera (herbal powder, liquid hair wash, shampoo, hair oil), Nyle (herbal shampoo), Fairever (fairness cream), Spinz (perfumes, deodorants and talc), Indica

Hindustan Lever Limited (HLL) that was one of the most dominant consumer products companies in India. It was present in virtually every category of the fast-moving consumer products market. It had two main shampoo brands, Clinic Plus and Sunsilk. Procter & Gamble (P&G) that was present in categories like detergents, cosmetics, shampoos and sanitary towels. Dabur was a leading Indian company in consumer products. Other Players such as RDM Traders Private Limited, Godrej and Johnson & Johnson were other players with low presence in the

The case mentions some problems that the company had to face and how they dealt with them. The rural population in India represented a big unexploited market. In terms of size alone, the rural markets were huge to be ignored. Penetration level in rural areas was substantially lower than in urban areas. Chik shampoo was the best example of CavinKare’s success in tapping low income markets in India. It was targeted the lower middle class and semi-rural population. However, they had very low awareness among consumers. There was a need for a superior quality shampoo with attractive perfume and affordable price. Chik shampoo started differentiating itself on the basis of quality and superior fragrance. CavinKare saw profitable opportunities in selling products to rural consumers and also consumers in small towns.
The company solved the problem of its product lack of awareness throughout:
Consumer education (Product Awareness).
• Company developed a mass communication plan to connect with the consumers and create brand awareness. They relied heavily on radio.
• The firm taught consumer how to wear shampoo. Company officials traveled in vans to rural areas for live demonstration of shampoo usage and product